European stock markets fell on Friday as investors reacted to new U.S. trade tariffs, mixed corporate earnings, and awaited important economic data from the eurozone and U.S.
At 07:05 GMT, the key European indexes were in the red:
🇺🇸 New Trump Tariffs Shake Markets
U.S. President Donald Trump announced new tariffs late Thursday on imports from multiple countries. Some of the key rates include:
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Switzerland – 39%
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Canada – 35%
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India – 25%
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Taiwan – 20%
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Thailand – 19%
Additionally, goods found to be transshipped to avoid tariffs may face a 40% extra levy.
While the new tariffs are concerning, losses were not as sharp as April’s market drop when Trump first introduced trade threats. This time, existing deals with the EU and Japan have helped cushion the blow, while talks with China and Mexico continue.
🇪🇺 Eurozone Inflation Data in Focus
Markets are now waiting for the release of the eurozone flash CPI (Consumer Price Index), expected to show inflation at 1.9% in July—slightly down from 2.0% in June.
Last week, the European Central Bank (ECB) kept interest rates steady at 2%, after cutting rates eight times since June 2024. With inflation easing slightly and economic signals mixed, investors are unsure if more rate cuts are coming soon.
🇺🇸 U.S. Jobs Data May Impact Fed Policy
Later today, attention will shift to the U.S. nonfarm payrolls report, which could influence the Federal Reserve’s decision on whether to cut rates in September.
Forecasts expect:
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Jobs added: 107,000 (vs. 147,000 in June)
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Unemployment rate: Rising slightly to 4.2% from 4.1%
Although the Fed kept rates unchanged this week, two governors dissented—calling for a cut for the first time in over 30 years.
🔍 Summary
Markets remain cautious as trade tensions, eurozone inflation, and U.S. labor data all collide in a single trading session. With central banks treading carefully and global uncertainty rising, investors are watching every move for clues on where the markets head next.
